Land is incredibly important in the UK. Land of Hope and Glory, Land of Our Fathers, landlords, landed gentry. And unless it is a leasehold transaction, property ownership usually means buying the land as well as the property that sits on it.
Who owns what land has separated classes and sparked wars for centuries. A such, HM Land Registry was created in 1862 as a secure, official and transparent way to record land and property ownership in England and Wales. Despite this, land ownership can be tricky to prove and some sellers will end up seeking a possessory title.
Here’s Open Property Group’s quick guide to possessory titles
Possessory titles explained
A possessory title can be granted by HM Land Registry when there’s no legal proof of who owns the land. This can happen if:
- There is a lack of title deeds
- There’s an absence of other critical ownership documents
- The deeds have been destroyed
- A long-term occupant is residing in a property without the owner’s consent
Isn’t all land registered with HM Land Registry?
Lodging land ownership with HM Land Registry only became compulsory in 1990. As such, current estimates suggest between 12% and 15% of land and property in England and Wales is not registered with the Government.
Are some properties more likely to be granted a possessory title?
Possessory titles can be more common when selling properties that are:
- On large estates
- Farms
- On land owned by the Church of England
- Rural properties that have been kept for generations
- Homes that haven’t changed hands for more than 36 years
What does a possessory title mean for sellers?
- A set legal processes: there is a prescribed process and timeline that must be followed when a property is sold with a possessory title. This is laid out in the Limitation Act 1980 and the Land Registration Act 2002.
- Insurance advised: a possessory title can be challenged by someone who thinks they have stronger ownership rights. This makes a sale more complex in the eyes of UK property law. Sellers are strongly recommended to take out a title indemnity insurance policy (some mortgage lenders will insist on this). A policy can protect the seller against financial loss should someone try to claim property without deeds (this could be some claiming adverse possession, also known as ‘squatter’s rights’).
- Sensitive pricing: a property with a possessory title is classed as a problem property. If a challenge is successful, even years after completion, the buyer can lose the dwelling without financial recompense. Additionally, mortgage lenders often reject requests to loan against homes with a possessory title. As such, properties for sale with a possessory title will be priced at a below-market value.
Do possessory titles apply to leasehold properties?
Possessory titles can be granted for leasehold properties but the legal situation is usually more complex due to the involvement of a freeholder. If the property is freehold, a possessory freehold title may be granted.
Is a possessory title permanent?
UK property law is set up so a possessory title can be upgraded to an absolute title (the strongest proof of land ownership that can’t be contested) after 12 years of uncontested ownership.
How to Claim Ownership of a Property Without a Deed In 8 steps
- Prove unbroken, unchallenged possession, without consent, for 10 years for registered land or 12 years for unregistered land.
- Evidence you have maintained the land and protected the property.
- Search HM Land Registry records to see if anyone is listed as owning the property.
- Apply for a possessory title using HM Land Registry’s AP1 or FR1 forms.
- Pay possessory title fees
- Wait for any objections or challenges
- If no objections, register the land with HM Land Registry
- Upgrade the possessory title to an absolute title
Open Property Group makes sellers without deeds or ownership documents guaranteed cash offers, even if they lack a possessory title or have failed in a bid. Our service is invaluable in complex situations, especially if you have inherited a property where proving ownership is impossible. Contact us to discuss deeds and possessory titles in more detail.
